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Lump Sum Car Payment

Car finance is probably the last thing on your minds during the coronavirus crisis: your priorities are likely to be around staying safe and ensuring you have enough money to feed the family.

However, if your car’s finance deal comes to an end during the lockdown period, you need to know what the best course of action is – before it’s too late.

You might not have to give your car back if you don’t want to – though if you do, you’ll want to know just how to go about getting it back to the finance company or dealer. And what do you do about sourcing a replacement. Here are a few pointers which will hopefully be of help:

What happens if my lump sum car payment is due during lockdown?

The best place to start is by contacting your lender, if you can afford to the pay the lump sum they will arrange payment and the car is all yours.

If you are unable pay the final payment the lender would usually arrange to collect the car. The lender won’t be able to collect the car during lockdown so may agree to you keeping the car until they are able to collect it.

Don’t get caught out! Check whether you have already signed a Direct Debit for the final lump sum to come out of your account as the final payment. If you have and can’t afford for it to be taken, then you should call your lender/bank to cancel it as soon as possible.

How can I keep my car?

If you would prefer to keep your car, you may be able to finance your lump sum car payment. Here at Red Potato we will arrange payment to the lender, you keep the car and re-pay us in affordable monthly instalments. This can all be done from the comfort of your home!

During lockdown all dealerships are closed: to save worrying in these uncertain times and the hassle of buying a new car, financing your lump sum car payment could be the answer.

I’ve taken a payment holiday on my existing finance, will it affect my application?

No! All three of the major credit reference agencies have announced that taking a payment holiday will not affect your credit score. It’s important to remember this only applies to payment holidays that have been approved with your lender.

I have bad credit can you still help?

Yes! Red Potato specialises in helping people with poorer credit ratings. We could help if you are in an IVA, Debt Plan or have had previous CCJ’s as we calculate what’s affordable to you.

Read more here: Bad Credit Car Finance

If you are worried about how you will pay your final lump sum payment, Red Potato could help with rates from 19.9% APR call us on 0800 297 437 or email us as

Read more here: our guide on Paying your Balloon Payment

Case Study – April 2020

Katie* received notification that her final lump sum payment would be collected at the end of the month, charging the account £9,000 which she could not afford. With dealerships closed due to Coronavirus a new car was not an option so she found Red Potato’s page. The team got straight into action, calculated a new affordable deal at 19.9% APR to repay the final lump sum payment and arranged payment directly to the original finance company allowing Katie to keep her car and pay over 5 years.

Representative Example: Borrowing £5,500 over 48 months with a representative APR of 19.9%, the amount payable would be £162.34 a month, option to purchase fee £10.00, with a total cost of credit of £2,302.32 and a total amount payable of £7,802.32

This website is operated by Premium Plan Limited. Red Potato is a trading name of Premium Plan Limited, which is registered in England with Company No 05977118. Registered office: Kempton House, Kempton Way, PO Box 9562, Grantham, Lincolnshire, NG31 0EA. Premium Plan Limited is authorised and regulated by the Financial Conduct Authority (FRN: 742272). The Red Potato name and logo are trademarks of Totemic Limited. Premium Plan Limited is a member of the Finance & Leasing Association (FLA).